On Mean Street, can J.P. Morgan CEO Jamie Dimon ever regain his hero-like status? Also, what is the single most important rule J.P. Morgan broke? Plus, it's time to save the Rose Bowl.

This transcript has been automatically generated and may not be 100% accurate.

... I ... the ... it was ... and what happened finally pulled into the old ... one ... with the company that night we went to this ... how JPMorgan ... CEO Jamie Dynan wants to run a business ... welcome to Main Street I'm Evan Newmark it is Friday May eleven ... am JPMorgan in big trouble ... yes EC apparently starting to ... look into it and possibly launch an investigation into statements that were made around ... the trading ... of the chief investment office ... thank heavens on a day like today we have a rotten Side Del ... forevermore told reporters here to Wall Street Journal ... Rob in your piece out Wall Street's go to guy get tripped up ... see big trouble ... in some trouble I know it's not a true rear ending blunder by how I think the MP for so long has been the golden boy among investors high compared to other bank CEOs anything so outspoken in our ... eating ... humble pie getting the money quote you ... can't build losses are particularly surprising because the de tails party to the tothe is intricately involved a bunch of the brinksmanship ... is now than it was the best part of the new headquarters for walking around with Henry to do list in his breast pocket of items that need to be ... addressed ... bright side I was looking around ... on his list is to do lists a ... call on didn't really ever know it so it's all that to double down on the trade ... the Seattle ... was that governments tells journalists upon you never know that this is just a Tempest in a teapot ... with the article is from inside out ah ... I didn't see it with that they have a new mark so I don't know I can answer that one boy ... let me ... let me as the lizard The reporting the story we have four delightful ... Goldman Sachs CEO ... and he's been he's been giving the BNP or for a few years ... church eighty people died Jamie ... was that ... he has held up what is more like Jay deputy what Blankfein to once be willing to be done ... I'm not sure but I think ... I think that they're still taking lessons from Hajime handle things like on the call yesterday he was very ... up front you know we'd makes huge egregious mistakes he was explaining market making you know had not him for ten hours and around ... so ... it's a note Tuesday ... well like someone ... the inevitable ... question will you ... get is that given where he is right now is Jamie Dawn handling this in the best we can ... I think he's in a tough spot but he has handled it out in his characteristically blunt when using words like into regions ... this is not that we do business sloppy things like that I think that is very much ... part of his appeal to so many investors who want to hear people ... talking to ... you know in in real time and a lot of ... other CEOs Don't ... or Wailea has been blogged about what will the stakes that were needed all mechanism ... he's also been bluntly is about the Volcker Rule named in the ... post you basing saying let us run our business we can figure things out ... the study contradicts his assertion that they can figure these these things that are out I think it deftly raises questions about his portfolio and what was it doing and that is not to talk to us it was the economic and what is right economic age broadside deal well with me ... trying to figure that out and on yet mean ... look this is a very little known ... on the department McKinsey marking its not the investment banking to have ... the risk controls we found out that the investment bank those ... obviously it could be argued in genie it should have ... and so it was talked into this business that nobody knows anything about the ones that you know ... doing its business ... now some might say willing ... and the word heads kind of get teased a little literally I think across Wall Street in general ... now a hedge is also that I'm you know that the hedge to the wrong way to lose money so ... you know I I think that an economic package makes it sound a little safer to really live for defeat the rest of Wall Street is thinking right now are they as they look as if you caught your folks over Coleman is what I say this all ... could happen here ... now if ... you win some you lose some ... we don't lose a month ... well they definitely admit that I just don't know what's worked and you know ... you can hedge everything perfectly so ... I but but they also genus of very Max say no we're not really a bank so we don't have this department ... I've at the very next interviews of today and I think they're a lot of people who ... did not like ... Jamie Dynan from the other banks and funds and copy it or write exactly he got his ... name and the houses all my God this is really on Things Up for our final question few Robin ... been asking for protection is the isthe is that every Blyton heels six months from now we never talk about this ever again ... or is this kind of get a permanent stain on Mr. Diamond's record yes or no ... I ... was I e there are ... I think people will not forget it I don't think it's a a prominent ... rather subtle is Robert Craigieburn and check out there reporting on the beest dot com ... now will Wall Street ever learn ... apparently not ... we have Dennis Berman and Francesco Guerrera here coming up to tell us whether Wall Street will ever ... not the best day for Wall Street's reputation ... most bank stocks down big including JPMorgan down almost nine percent ... what I would have to say the overall effect on the market has been preteen muted ... what what am I missing here Francesco Hererra ... I mean maybe this isn't a big deal what you think it's it's a big deal about it in your Money Investing section on most of the front page of the oxygen ... I think it was to be dealing with a company and that is a company that of the ... sale to the crisis which ... led the five point covers ... no problems that will pique the couple banks on the cheap what all the way ... JV damaging the Wall Street an article with a stumble they've produced and whether the get out of that we'd better do it on the back it is going to be very very truth that is ... the deal or not ... I've saved the DH the ... body and I couldn't I be buying stocks is no way to JPMorgan is worth ten percent ... less than it was yesterday told you see me they don't control their risk they have no idea what's going on in the balance sheet he held that made will be jammed on Tuesday Mr. this case but I don't think it is worth ten ten ... percentage points Friday night and that's about it that's about it most wineries have not examined the hundred fifteen billion dollars ... the views in a market cap something I think it's all about you know some of the twelve ... billion dollars the only thing I would say things that this can it be that the losses two billion dollars ... and you can be up to be more to get you more than that because not everybody knows in a market that the half to sell ... that those positions so that we wait for that ... reason why selling off is not because of losses per se because ... I knew the Washington now is to become an even harder on the banks when it comes to the vocal the apprentice the adding this to the going ... out ... there ... by that I think the the real reason he is that that what she was waiting for this anyway into account on the bank's pretty hard anyway I think especially in a ... politically charged three ... present election campaign that's gonna happen anyway now that the ... Fed excuse ... and events he can say much but it is and I wanna turn to another article that was on of the beest dot com I believe is in the paper early to make ... about Zoe crew Hynix's only cruise once upon a time when the you know that ... that the grain trader of the great bonds fixed income per cent of them and the Morgan Stanley ... who are was named her purported to be a possible contender replace John Mack as CEO of Morgan Stanley it ... didn't work out so well for her bath I made huge losses one quarterback in oh seven to believe in their fixed income division that silly cruises running ... she was up ... then ... the bottle was thrown out from warnings the telephone over ... and then she was out with Capital seeded by Morgan Stanley set up in our own hedge fund which is Ardi gecko was just in the market today that they're closing down to is the isthe is that what was intended to put people expect them ... to hold Wall Street overnight does that mean ... the loss to never stop losing money no some losing money because ... the other side of making money with the trading is losing money ... and so ... people in Washington that together and in the one who is ... ill make it stop now ... government bailouts ... huge tub that underwrite that ... I can I get that ... but the idea that somehow you can't regulate SoHo Creed who will so thing still lose money this seems absurd to but this is one good thing about about the good of his own ... right so the good thing is that she shows that this demo CDs that we knew right ... she didn't do well she lost money ... the hedge fund causes ... Schigel so I think that's a good thing ... the thing was Cordis Valley fighter ... so it was by the Morgan family she took responsibility when about one in five months of trading loss that happen ... before the financial crisis actually ... this tally to be known to any body and do we reported this debate going it doesn't get that twenty million dollars to see the hedge fund ... the question from August rallies ... quite ... well ... maybe maybe CEO Matt ... wanted a base of the knot and opened in the courts are arbitration with their dog overextended ... what is the roller door was the Monday Citigroup which that how much for that and it's it's been making hundred million dollars on building the party that he was he actually came over ... the election came over to the heart of it but that was but what can these so called great traders week Bruno Iksil we had to ... eat and running shoes ... to curb risk management for thirty year career at all the sudden she wasn't some superb ... King can according to traders can exist outside of the huge balance sheet ... which is other people's money someday ... write some of the site and it's been it's fun world but still other people's money right ... but is money that they reason that it is tied to that individual ... Celtic Bridgewater says his lawyers have been in the world ... today and I'd say guess they have ... come up so it is to be depends how you categorize ... balance sheet in other people's money what do you think would be Alcoa ... of the ... two billion thirty billion dollar black or whatever it's being ... here JPMorgan to do the Gissen where to look look at a few months from now ... does anything really changed on Wall Street ... all of the puzzle a few heads will roll the JPMorgan will see a few heads running in the next few days and then we'll see how the fallout is and how far out is to strike out that the value chain and JPMorgan ... and hiking JPMorgan city was too well is no question of the Volcker we lament that they give me the main question is how much they had any ... precisely to capture the stopover industry let's remember that these attitudes may have not been caught ... by the Volcker rule its twisted soul ... of the episode in pressure to tighten the rules to make sure that this type of ... hedging ... doesn't happen in one one last ... thing ... and that applies to Jamie diming implies that every grain trader ... know when to get on the divvied I miss him announces Retirement should've been ... this means that I set out to be out of my job as well as ... he had a pristine activity could I left a trial that he now he's gotten ... a king with the keys he said a blemish on his right that so the key to a long line is knowing when it's time to go to bed is perfect ... for a minute you very much on ... today's ... trading blunder against was all the last few months for some reason we just ... became a big deal just yesterday ... now coming up next Jason Zweig The Intelligent Investor ... will talk about when Jamie diamonds real mistake was coming up next ... looking now JPMorgan's stock down about nine percent which is a lot of money translated into actual market cap ... what was JPMorgan big mistake where to go wrong ... was into some bad forecasting models ... absolutely not says Jason Zweig The Intelligent Investor ... is the case ... of simple self deception ... will delude ourselves going here we are in the investing and trading we delude ourselves on our time that's right ... you know I'm ... one of the things they talk about is the wonderful speech that degree ... Nobel Prize winning physicist ... Richard Fineman game in nineteen seventy four ... when he talked about time ... the dangers in science and said the yen on the first principle is ... known for yourself ... he pointed out ... that the easiest person ... for you for ... it yourself ... it's harder for your gets harder to fool other people ... can use to plan you point out that you should always especially when things are going right for you ... you know when a train is going to write that her life ... you should ... not say what must be wrong but read to re examine them you know what it what is that they could go wrong or why isn't the right thing to go outside yourself ... talk to other people can secure some shadows ... and just check to make sure that you not living in some kind of dumb dream ... yet exactly and it's the key with the key thing here and it's that ... time ... investors really need to recognize that willpower is garbage ... you know everyone says you know ... he can calm prided quiet moment ... when all you know if I double my money on this position ... I don't know what to do or if I lose eighty percent of my money ... I'll know what to do ... but it's easy to say when you're in and ... that cool state ... for when you're in the heat of the moment you're not going to know what you do you're going to do exactly the wrong thing ... and it's really and that's why policies and procedures are so what what that's why most traders have some role yet ... and that's why ... they they try and ... firms themselves ... they have ... rules and there's all sorts of procedures and crosses in his post in place and to prevent something like this happening so let's go back a couple of months ago ... GDP ... Jamie does very smart guy ... he's at Mary's on the phone with ... leaks and rumors that ahead of the chief investment officer ... babies on the phone directly Bruno Iksil was supposedly trader was the only straight down ... and they're talking point ... Jamie diming think ... John ... this is going really wrong and then turn around teller of audio tempest in a teapot what does he basically ... called all my God we're in so deep which is pleasing and hope the market takes care of ... well I think we both wish there we knew that ... time but I think there ... may be the the the the ... the way to ... think about this today when we ... obviously don't have the insight into exactly what happened ... is just a picture ... any of us in a situation where were making money were making more money were making still more money ... the last thing you're going to under those circumstances ... is questioned ... whether you are right ... right and all you're going to say is I'm right I'm right I'm right ... and you basically get don't mean quick ... your brain derives a little corner ... were the only thing you can see in front of you is profits fires the horizon can stretch ... that scene exact moment ... we have to bring ... the outside view the situation ... and say what am I missing we're could we go around Jason Zweig The Intelligent Investor check out his piece coming out this afternoon and on ... the beest dot com and check out his piece tomorrow but in the Weekend Investor ... on ... self ... delusion how it can kill you ... now ... how about the Rose Bowl ... well Rachel Bachmann ... is a very provocative piece out today ... she will come on the show now and defend itself which he says ... forget about this opposing playoffs in NC double A football keep the Rose Bowl ... to heck with the playoffs that I get that moral is right ... take one tablet whatever away is it's up in the playoffs but it's not the PAC twelve were big ten has interests in Expedia ... ok ... I need you to declare your interest right now ... because ... I could ... only someone when interest ... in the Rose Bowl would come out with such a provocative ... proposal is that ... did you know did you read here he lives in Pasadena something like that ... I don't own ... one ITG declare all your interest see ... my interest is in the new from the press box at the Rose Bowl Stadium you can never been there I have read in the air ... it is the most spectacular sight in college football is beautiful the sun setting against the San Gabriel Mountains it is ... is on trial in sports so that's one just ... let interest is protecting college football's rail season which is hands on the bass trailer season sports ... and I think this is um this move is a good way to bow protect ... iconic the most iconic ... game in college football I would argue ... ends to preserve what makes the sport ... great I think those are all know who he was objectives ... but let's go even further ... if you happen to be in alumni leveling a long time ... whatever you want us all of those ... people ... of the ... APEC twelve school ... I knew you happen to be an alumnus of the PAC twelve school I have not been if the Rose Bowl I in trouble part of the country ... where were you recently reported that ... for the PAC twelve ... school ... well I think it's even worse new thing because now at night use to work in Oregon which has packed up country I also went to Michigan oh I'm I'm probably twice guilty to those people who would disagree with me ... um but I would argue ... that really ... awful this certainly isn't the interests of those conferences ... it's also the interest of the sport I think we're at a point of no return here ... because history shows us that once the flap is established spelling out of their appeal they inevitably expands ... and a bigger playoff inevitably overshadows the Rose Bowl and and every other sort of quirky great thing about this or that thing ... a kid final question ... will anybody listen ... to your fathers ... yes sir that's a really good question because I think any and they're going to be hundreds of millions of reasons not to and that is how much the BCS will make ... from selling a plane it's hard to go against the law to Rachel Bachman I'm Evan Newmark for mean streak and fantastic weekend will see on Monday Simon Constable and four